Value of listed companies on GSE sees a decline in 2020, says BoG report

The Financial Stability Review said investors experienced a total capital loss of GHC2.42 billion at the end of 2020

The value of listed companies on the Ghana Stock Exchange (GSE) recorded a decline in 2020, the Financial Stability Review of the Bank of Ghana (BoG) has said.

During the period under consideration, the GSE had 36 listed equities on its platform compared to 39 equities in 2019.

According to the BoG report, the total market capitalization recorded at the end of 2020 was GHC54.37 billion, as compared to GHC56.79 billion in 2019. The decline in market capitalisation, which translates into a loss of 4.4% could mainly be attributed to decreases in stock prices on the local bourse.

The report said the factors, which accounted for the decreases in stock prices, were lower demand and excess supply of equity stocks, as investors were eager to offload their assets for cash in light of uncertainties arising from the COVID-19 pandemic.

“In effect, investors experienced a total capital loss of GHC2.42 billion at the end of 2020”, the report added.

As of November 12, 2021, the GSE Composite Index which tracks the performance of all companies traded on the Ghana Stock Exchange had returned 53.02% with a Market Capitalization of GHC65.24 billion.

The Bond market had traded 178.76 billion representing 65.39% more than the full year of 108.41billion traded last year.

Nicholas Brown/ with additional information from African markets

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